CHAPTER-2
The Origins of Software
Learning Objectives
• Explain outsourcing.
• Describe six different sources of software.
• Discuss how to evaluate off-the-shelf software.
• Explain reuse and its role in software development.
System Acquisition: Outsourcing
• Turning over responsibility of some or all of an
organization's information systems applications and
operations to an outside firm
• Reasons to outsource
• Cost-effective
• Take advantage of economies of scale
• Free up internal resources
• Reduce time to market
• Increase process efficiencies
• System development is a non-core activity for the
organization
Sources of Application Software
Hardware Manufacturers
• IBM is the leader in software sales and services.
• Hardware manufacturers tend to focus on system
software and utilities.
Packaged Software Producers
• Microsoft is the leader in prepackaged software production.
• Prepackaged software is off-the-shelf software.
• Often, prepackaged software is turnkey software (i.e. not
customizable).
• CostCriteria for Choosing Off-the-Shelf Software
• Functionality
• Vendor support
• Viability of vendor
• Flexibility
• Documentation
• Response time
• Ease of installation
Custom Software Producers
• Firms like Accenture and EDS are leading custom software producers.
• Consulting firms develop software to meet the client’s specific
requirements.
• Consulting firms are usually called when the client company does not
have in-house expertise or manpower available to develop the
system.
Enterprise Solutions Software
• Enterprise Resource Planning (ERP) systems that integrate individual
traditional business functions into modules enabling a single seamless
transaction to cut across functional boundaries.
• SAP AG is the leading vendor of ERP systems.
ERP System Example
Application Service Providers
• ASP: an organization that hosts and runs computer applications for
other companies, typically on a per-use or license basis
In-House Development
• If sufficient system development expertise with the chosen platform
exists in-house, then some or all of the system can be developed by
the organization’s own staff.
• Often, there are a variety of sources used, with in-house staff playing
a role as well as consultants or ERP vendors.
• UseValidating
a variety of information
Purchased sources:
Software Information
• Vendor’s proposal
• Running software through a series of tests
• Feedback from other users of the vendor’s product
• Independent software testing services
• Articles in trade publications
What is an RFP?
• Request for Proposal: a document provided to vendors to ask them to
propose hardware and software products or services that will meet
the requirements of a new information system.
• Based on vendor bids, analyst selects best candidates.
Reuse
• The use of previously written software resources in new applications
• Primary enabling technologies
• Object-oriented development
• Object class encapsulates data and behavior of common organizational entities (e.g.
employees)
• Component-based development
• Components can be single objects or functional groupings of objects
Costs and Benefits of Reuse
Approaches to Reuse
low
• Ad hoc: individual, unplanned use
• Facilitated: use informally managed and
commitment
disseminated by expert guru evangelists
Cost and
• Managed: organizationally enforced reuse
policies and practices
• Designed: reusable components developed and
high maintained in-house
Summary
• In this chapter you learned how to:
• Explain outsourcing.
• Describe six different sources of software.
• Discuss how to evaluate off-the-shelf software.
• Explain reuse and its role in software development.
